Occupational Diversification as an Adaptation to Rainfall Variability in Rural India

Disaster Risk Financing and Insurance (DRFI) Workshop presentation

Occupational diversification among household members in rural India is investigated as an adaptation strategy against the risksarising from the variability of local rainfall. Nationally representative household level survey data are combined with the coefficient of variation of rainfall constructed based on historical rainfall data at the district level. The analysis finds that high rainfall variability has significant negative effects on the agricultural specializationof within-household occupational choices.This result is reinforced by the finding that improved access to irrigation, education, credit, roads, and postal services, are associated with a lower occupational diversification within families and a greater specialization of household members in agricultural-relatedemployment.